Social security coordination: EU member states’ representatives confirm provisional agreement 13:30 EU member states’ representatives confirm provisional agreement on new rules[...]

Member-state ambassadors to the EU have endorsed the provisional agreement reached last week with the European Parliament on a proposed revision of the coordination of national social security systems at EU level.

The agreed text updates the existing EU legislation on social security coordination by making it clearer, fairer and easier to enforce. The revised rules will strengthen fair labour mobility and, as a result, people who move to another EU country to live or work will find it easier to exercise the rights to which they are entitled to.

Main elements of the agreement

The revised rules focus on five key areas: unemployment benefits, long-term care benefits, access to welfare benefits for economically inactive persons, family benefits and applicable legislation for posted workers and persons working in two or more member states.

Unemployment benefits

Under the agreement reached with the Parliament, people who seek work in another EU country can continue to claim unemployment benefits from their previous country for six months. This period can be extended at the discretion of their previous country, up to the end of the period of entitlement.

Moreover, according to the principle of lex loci laboris, workers who were "active" (i.e. employed, self-employed and/or paying insurance contributions) in a member state other than their country of residence for an uninterrupted period of 22 weeks will be entitled to receive unemployment benefits from the country where they were last employed, if the person satisfies the conditions of the country's national legislation to be entitled to unemployment benefits.

Long-term care benefits

The provisional agreement maintains the Commission's goal of reflecting the increasingly important role that long-term care benefits play in national social security systems. It increases legal certainty by clarifying the rules under which such benefits can be coordinated, thus facilitating the mobility of those in need of long-term care and the people caring for them.

Co-legislators agreed to add a clear definition and a list of long-term care benefits to be covered by the new rules, which will be evaluated by the Commission three years after entry into application.

Prior notification

Under the agreement reached with the Parliament, if a worker will carry out activities in another member state, the relevant authorities of the home member state should be notified in advance. Exceptions apply in the case of business trips and short-term activities (i.e. those with a maximum duration of three consecutive days of work within a period of 30 consecutive days). Construction workers will not be covered by the exception for short-term activities.

Family benefits

EU rules ensure that people can receive family benefits from the country responsible for their social security, even when their family members live in another EU country, as if they all resided in the same place.

Co-legislators aligned with the Commission's proposal on the aim to promote shared child-raising responsibilities and remove potential financial disincentives for parents who reduce their working hours in order to take care of their child. The agreement clarifies the distinction between family benefits in cash - intended to replace income not earned due to child-raising - and all other family benefits.

Economically inactive persons

On access to benefits for economically inactive persons moving to another EU country, the compromise text refers to relevant recent case law and further stresses that mobile citizens should not be prevented from contributing to sickness coverage schemes.

Persons working in two or more member states

If persons are carrying out professional activities in two or more member states, there is a need to determine which legislation is applicable to them. The provisional agreement between the Council and the Parliament provides additional guidance on identifying the registered office or place of business of the undertaking or employer in order to determine which country's legislation should apply to them.

Next steps

The provisional agreement still needs to be endorsed by the European Parliament. It will then formally be adopted by both institutions following legal-linguistic revision.

Background

Social security systems in the EU are a member-state competence and as such are not harmonised. For persons who remain in their country of origin, that member state can decide who is insured under their legislation, what benefits they are entitled to and what the conditions of access are. However, to ensure that the free movement of people across borders is possible in practice, national social security systems need to be coordinated as people should not lose their protection when moving in the EU. The rules defining this coordination are adopted and updated at EU level.

On 13 December 2016, the European Commission submitted a proposal to amend regulations 883/2004 and 987/2009 on coordination of social security systems. The revision sought to:

• clarify the circumstances in which member states can limit access to social benefits claimed by economically inactive EU mobile citizens
• establish a coherent regime for the coordination of long-term care benefits
• propose new arrangements for the coordination of unemployment benefits in cross-border cases
• introduce new provisions for the coordination of family benefits
• clarify the conflict rules on applicable legislation and the relationship with Directive 96/71/EC on the posting of workers in the framework of the provision of services

• Regulation on coordination of social security systems, amending regulations 883/04 and 987/09 (text of the agreement)
• EU rules on coordination of social security systems (background information)